SEC Prepares Traditional Markets for Extended Trading Hours

The US Securities and Exchange Commission (SEC) is working to modernize traditional markets by extending trading hours, similar to the seamless trading cycle seen in cryptocurrencies. According to a roundtable meeting held at its Washington headquarters, the agency's efforts are aimed at bringing US exchanges closer to 24-hour trading. SEC Chairman Paul Atkins emphasized that extending trading hours could allow investors to react more quickly to corporate news and economic developments.

However, the possibility of wider bid-ask spreads and higher price volatility was also raised during the meeting. SEC Commissioner Hester Peirce noted that companies might have less time to intervene in technology issues and oversee transactions while extending trading hours. Peirce also warned that rumors spreading on social media while corporate offices are closed could sharply affect stock prices.

Maintaining market surveillance during overnight hours, when human intervention is limited, emerged as one of the most important operational topics of the plan. The SEC's preparations do not mean that US exchanges will immediately start 24-hour trading, but rather, the necessary infrastructure and oversight preparations are underway.